Sporty, but affordable company car?

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GB

4 May 2010 17:13

Q) I want a sporty executive-type saloon or four-seat coup for my next company car, but I dont fancy sky-high tax bills. Fuel economy isnt really a consideration because I have a company fuel card. Which cars offer low tax bills, but are still classy and desirable? I dont want anything too slow.Tom Jennings

A) Company car tax or benefit in kind tax, as its officially called varies depending on the price of the car (its P11D value), how much carbon dioxide (CO2) it pumps out and what type of fuel it uses.

For cheap tax bills, look for a low-CO2-emitting car with a low list price. Diesel cars generally emit less CO2 than petrols, but are charged at a high rate of tax because of the other pollutants they emit. Hybrids are taxed at a lower rate than both petrol or diesel cars, although they are dearer to buy.

Have you considered the new BMW 320d Efficient Dynamics? Its priced at 27,245, but emits just 109g/km of CO2. That means youll only pay tax on 3542 annually.

The Mercedes-Benz C220 CDI Blue Efficiency SE is also worth a look. It costs 25,800 and emits 127g/km of CO2, so your taxable amount will be 4644.

Dont fancy either of those? The Audi A5 2.0 TFSI 180 pumps out 149g/km of CO2 and costs 25,485, so youll pay tax on 4587.

The actual amount thats deducted from your salary each month will depend on your annual salary.